IC86 RISK MANAGEMENT - 9
| Q1.What kind of risk is - 'Losses due to Hurricane'? 1. Physical Risk 2. Dynamic Risk 3. Liability Risk |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 3 |
| Both 2 and 3 |
| Q2.Below is a list of three major industrial disasters. Arrange them in a sequence starting from the first - 1. Mina Mata Mercury Disaster (Japan) 2. Bhopal Gas Tragedy (India) 3. Triangle Factory Fire - New York (USA) |
| 3, 1 and 2 |
| 2, 1 and 3 |
| 1, 3 and 2 |
| 3, 2 and 1 |
| 1, 2 and 3 |
| Q3.In Mumbai, during monsoons, flooding can cause a loss. What type of risk is this? 1. Market Risk 2. Physical Risk 3. Social Risk |
| Only 1 |
| Only 2 |
| Only 3 |
| 1 and 2 |
| 1 and 3 |
| Q4.Under which of the following risk attitude category is a person normally frightened by risk and does not like to live with uncertainty? |
| Risk Neutral |
| Risk Averter |
| Risk Challenger |
| Risk Preferer |
| Risk Manager |
| Q5.Which risk identification technique has the biggest advantage of having first-hand information and avoiding reliance on reports from others? |
| HAZOP study |
| Checklists and Questionnaires |
| Flow Charts |
| Physical inspection |
| Study and inquiry through information and documents |
| Q6.How is the probability of occurrence measured? |
| Only as a whole number |
| Only as a decimal |
| Only as a fraction |
| Only as a percentage |
| As a decimal or fraction or as a percentage |
| Q7.Proper identification and analysis of loss exposures will depend upon which of the following factors? 1. Classification scheme for identifying all the possible exposures 2. Degree of these exposures in terms of impact on objectives 3. Employing proper methods |
| Only 1 |
| Only 2 |
| Both 1 and 2 |
| Both 2 and 3 |
| All 1, 2 and 3 |
| Q8.What were the changes discussed in the Basel II Accord? 1. Changes in treatment of EXPECTED losses 2. Changes in treatment of UNEXPECTED losses 3. Treatment of securitization exposures |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| All 1, 2 and 3 |
| Q9.___ is not a component of ERM. |
| Event identification |
| Risk assessment |
| Monitoring |
| Internal environment |
| Corporate governance |
| Q10.Identify the INCORRECT statement with regards to ERM. |
| ERM is meant to apply merely to insurance companies / financial institutions |
| ERM is intended to become an integral part of how an organization operates |
| ERM stresses value creation |
| ERM's goal is to seek an appropriate risk-return position |
| None of the above |